The role of minimum income in combating poverty and promoting an inclusive society in Europe

Millions of Europeans today work in low-wage jobs that are not covered by labour agreements or minimum wages.

The impact of the economic crisis provides a stark reminder of how efficient safety nets, including guaranteed minimum income schemes, could help to lift people out of poverty and maintain stable consumption.

The report on this issue was one of the most important drafted by the Committee on Employment (EMPL) and also constituted part of ParliamentÂ’s contribution to the European Year for Combating Poverty and Social Exclusion (2010).

The Greens believe that a framework Directive on minimum income is necessary and should have become the political legacy of the European Year.

Such a framework should stipulate a common methodology for determining what constitutes an adequate minimum income, including its definition, criteria on adequacy, indicators for eligibility or accessibility and benchmarks on results.

Guaranteed minimum incomes should be set above the 'at-risk-of-poverty' threshold, which is equivalent to at least 60% of median household income.

The report includes a call for minimum income schemes and the need for measures designed to eradicate poverty and social exclusion.

The Greens successfully pointed out that minimum income schemes help to reduce poverty.

Even in times of crisis, minimum income schemes are less a cost factor than a buffer for demand.

Early investments aimed at combating poverty yield major returns by reducing long-term costs for society.